Subordinate legislation is delayed, ministries issued more than 600 opinions in 2023.
Institutions performed best last year in promptly responding to inquiries from citizens and businesses and in the quality preparation of regulations, as all ministries responded to business inquiries via email, and a regulatory impact analysis was conducted for 98% of laws. On the other hand, the high regulatory burden on businesses and delays in adopting subordinate legislation remain the lowest-rated components of the Regulatory Index of Serbia (RIS).
The total value of NALED's Index, which tracks the manner and quality of lawmaking and implementation, is 55 out of 100 points, which is still halfway to the ideal, it was concluded at the official presentation of the results at the residence of the Swedish Embassy.
A positive development noted was the cessation of the old practice of adopting laws through urgent procedures, and quality public discussions were held for as many as 83% of laws. However, one of the frequent criticisms from businesses and civil society organizations is that public discussions do not significantly influence any changes, highlighting the need for greater inclusivity in the initial phase of drafting laws, as indicated by the RIS results.
- RIS is an important tool that guides lawmakers towards building a stronger and more inclusive regulatory process. Therefore, it is important for this methodology to continue developing and be publicly discussed, as dialogue is a powerful tool in creating a more transparent business environment," stated Anika Ben David, the Ambassador of the Kingdom of Sweden to Serbia. The Swedish International Development Cooperation Agency (Sida), through the project "Public Procurement and Good Governance for Greater Competitiveness" implemented by NALED, supported the creation of RIS.
In 2023, a total of 161 laws were adopted, although the Legislative Activity Plan envisaged 346. Additionally, 49 new regulations were adopted, and any deviation from the Plan affects the predictability of the regulatory environment.
- The RIS 2023/24 edition introduces numerous innovations, including the measurement of the quality of parliamentary debate. I would like to highlight that NALED initiated the new convocation of the Economic Caucus, which as an informal body, contributes to the quality of dialogue in the parliament. The Caucus is a forum where MPs from all parties can learn about important economic issues to be prepared for constructive argument exchange on legislative proposals related to the business environment," stated Violeta Jovanović, Executive Director of NALED.
Regarding the timeliness of law implementation, RIS indicates that in 2023, 58 subordinate acts out of the 261 required by laws were adopted, with an average delay of 421 days. Ministries tried to compensate for the lack of legal acts by issuing more than 600 individual opinions on provisions within their jurisdiction, which should not replace clear and precise regulations.
Although there was a slight improvement, the regulatory burden on businesses remains high. RIS profiled a typical company operating in Serbia, defining it as a micro-enterprise that is a VAT payer and issues 500 invoices annually. Such a company annually allocates 2.6% of its total business revenues to just 10 of the most common administrative requests.
RIS has been in existence for over a decade, and its methodology has been improved over the years to enhance transparency and the quality of regulations, providing insight into the lawmaking and implementation process. It measures the predictability and stability of economic policy and legal security, which is reflected in the consistent application of laws, efficient administration, and communication with state authorities. It consists of six components that monitor the lifecycle of more than 200 regulations relevant to businesses through 25 indicators, 64 of which are important for Serbia's EU negotiation process.
